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This is a Bill, not an Act. For current law, see the Acts databases.
2013-2014-2015-2016
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Superannuation Legislation Amendment
(Transparency Measures) Bill 2016
No. , 2016
(Treasury)
A Bill for an Act to amend the Corporations Act
2001, and for related purposes
No. , 2016
Superannuation Legislation Amendment (Transparency Measures) Bill
2016
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
Schedule 1--Product dashboards
3
Corporations Act 2001
3
Schedule 2--Portfolio holdings disclosure
9
Corporations Act 2001
9
No. , 2016
Superannuation Legislation Amendment (Transparency Measures) Bill
2016
1
A Bill for an Act to amend the Corporations Act
1
2001, and for related purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act may be cited as the Superannuation Legislation
5
Amendment (Transparency Measures) Act 2016.
6
2 Commencement
7
(1) Each provision of this Act specified in column 1 of the table
8
commences, or is taken to have commenced, in accordance with
9
column 2 of the table. Any other statement in column 2 has effect
10
according to its terms.
11
12
2
Superannuation Legislation Amendment (Transparency Measures) Bill
2016
No. , 2016
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. The whole of
this Act
1 July 2017.
1 July 2017
Note:
This table relates only to the provisions of this Act as originally
1
enacted. It will not be amended to deal with any later amendments of
2
this Act.
3
(2) Any information in column 3 of the table is not part of this Act.
4
Information may be inserted in this column, or information in it
5
may be edited, in any published version of this Act.
6
3 Schedules
7
Legislation that is specified in a Schedule to this Act is amended or
8
repealed as set out in the applicable items in the Schedule
9
concerned, and any other item in a Schedule to this Act has effect
10
according to its terms.
11
Product dashboards Schedule 1
No. , 2016
Superannuation Legislation Amendment (Transparency Measures) Bill
2016
3
Schedule 1--Product dashboards
1
2
Corporations Act 2001
3
1 Subsection 1017BA(1)
4
Repeal the subsection, substitute:
5
Making product dashboards publicly available
6
(1) The trustee, or the trustees, of a regulated superannuation fund that
7
has 5 or more members must ensure:
8
(a) that a product dashboard for each of the fund's:
9
(i) MySuper products, other than any of a kind prescribed
10
by the regulations; and
11
(ii) qualifying choice investment options;
12
is publicly available at all times on the fund's website; and
13
(b) that each product dashboard sets out the information required
14
by subsection (2) or (3); and
15
(c) that the information set out in each product dashboard is
16
updated within 28 days after any change to the information;
17
and
18
(d) if the regulations prescribe either or both of the following:
19
(i) the way information is to be set out in a product
20
dashboard;
21
(ii) the way a product dashboard is to be displayed, and be
22
accessible, on the fund's website;
23
that each product dashboard sets out information, and is
24
displayed and accessible, in accordance with the regulations.
25
(1A) Subsection (1) does not apply to the trustee, or the trustees, of a
26
regulated superannuation fund:
27
(a) if the fund is a pooled superannuation trust or an eligible
28
rollover fund; or
29
(b) if any conditions prescribed by the regulations are met in
30
relation to the fund; or
31
(c) until 1 October of the current financial year for a product
32
dashboard for a qualifying choice investment option, if that
33
Schedule 1 Product dashboards
4
Superannuation Legislation Amendment (Transparency Measures) Bill
2016
No. , 2016
investment option was not one of the fund's qualifying
1
choice investment options for the previous financial year.
2
What product dashboards must set out
3
2 At the end of subsection 1017BA(2)
4
Add:
5
For the purposes of paragraph (b), the regulations may empower
6
APRA or ASIC to determine instructions for how to set out that
7
other information.
8
3 Subsection 1017BA(3)
9
Omit "Subject to subsection (4), the product dashboard for a choice
10
product", substitute "The product dashboard for a qualifying choice
11
investment option".
12
4 Paragraph 1017BA(3)(a)
13
Omit "for each investment option offered within the choice product".
14
5 At the end of subsection 1017BA(3)
15
Add:
16
For the purposes of paragraph (b), the regulations may empower
17
APRA or ASIC to determine instructions for how to set out that
18
other information.
19
6 Subsections 1017BA(4) and (4A)
20
Repeal the subsections, substitute:
21
Meaning of qualifying choice investment option
22
(4) A qualifying choice investment option, for a regulated
23
superannuation fund, is an investment option that:
24
(a) is within one of the fund's choice products; and
25
(b) is one of the fund's 10 largest investment options
26
(disregarding any excluded by subsection (4A)):
27
(i) for choice products; and
28
(ii) as measured by funds under management on 30 June of
29
the previous financial year.
30
Product dashboards Schedule 1
No. , 2016
Superannuation Legislation Amendment (Transparency Measures) Bill
2016
5
(4A) An investment option is excluded from paragraph (4)(b) if:
1
(a) the assets of the fund that are invested under the option are
2
invested only in one or more of the following:
3
(i) a life policy under which contributions and accumulated
4
earnings may not be reduced by negative investment
5
returns or any reduction in the value of assets in which
6
the policy is invested;
7
(ii) a life policy under which the benefit to a member (or a
8
relative or dependant of a member) is based only on the
9
realisation of a risk, not the performance of an
10
investment;
11
(iii) an investment account contract the only beneficiaries of
12
which are a member, and relatives and dependants of a
13
member; or
14
(b) the sole purpose of the option is the payment of a pension to
15
members who have satisfied a condition of release of benefits
16
specified in a standard made under paragraph 31(2)(h) of the
17
Superannuation Industry (Supervision) Act 1993; or
18
(c) the assets of the fund that are invested under the option are
19
invested only in another single asset; or
20
(d) the option is of a kind prescribed by the regulations.
21
(4B) The regulations may prescribe circumstances in which assets of a
22
regulated superannuation fund are, or are not, to be treated as
23
invested in a single asset for the purposes of paragraph (4A)(c).
24
7 Before subsection 1017BA(5)
25
Insert:
26
Meaning of fee
27
(4C) A fee, in relation to a regulated superannuation fund's:
28
(a) MySuper product; or
29
(b) qualifying choice investment option;
30
is a fee (other than an excluded fee) that may be charged under the
31
Superannuation Industry (Supervision) Act 1993 by the trustee, or
32
the trustees, of the fund in relation to the product or investment
33
option.
34
Schedule 1 Product dashboards
6
Superannuation Legislation Amendment (Transparency Measures) Bill
2016
No. , 2016
Lifecycle exceptions and stages
1
(4D) If a lifecycle exception applies to a MySuper product, then
2
subsections (1), (1A), (2) and (4C) apply in relation to the product
3
as if each reference in those subsections to a MySuper product
4
were a reference to each lifecycle stage of the MySuper product.
5
(4E) If a lifecycle exception applies to a qualifying choice investment
6
option, then subsections (1), (1A), (3) and (4C) apply in relation to
7
the investment option as if each reference in those subsections to a
8
qualifying choice investment option were a reference to each
9
lifecycle stage of the investment option.
10
Note:
This subsection does not apply to subsection (4). This means that
11
when working out the fund's qualifying choice investment options
12
(including the 10 largest investment options across all of the fund's
13
choice products):
14
(a) an option with lifecycle stages is treated as a single option; and
15
(b) funds under management of those stages are aggregated.
16
Definitions
17
8 Subsection 1017BA(5)
18
Insert:
19
custodial arrangement has the same meaning as in
20
section 1012IA.
21
eligible rollover fund has the same meaning as in the
22
Superannuation Industry (Supervision) Act 1993.
23
excluded fee means an activity fee, an advice fee or an insurance
24
fee, all within the meaning of the Superannuation Industry
25
(Supervision) Act 1993.
26
9 Subsection 1017BA(5) (definition of fee)
27
Repeal the definition, substitute:
28
fee has the meaning given by subsection (4C).
29
10 Subsection 1017BA(5)
30
Insert:
31
Product dashboards Schedule 1
No. , 2016
Superannuation Legislation Amendment (Transparency Measures) Bill
2016
7
investment option, within a choice product:
1
(a) includes:
2
(i) the choice product, if the choice product does not
3
contain multiple investment options; and
4
(ii) a financial product acquired under a custodial
5
arrangement; but
6
(b) does not include a custodial arrangement.
7
lifecycle exception:
8
(a) for a MySuper product, has the meaning given by
9
subsection 29TC(2) of the Superannuation Industry
10
(Supervision) Act 1993; or
11
(b) for a qualifying choice investment option, means a rule under
12
the governing rules of the fund that:
13
(i) relates to the investment option; and
14
(ii) would be covered by paragraph (a) if the investment
15
option were a MySuper product.
16
lifecycle stage: a lifecycle stage of:
17
(a) a MySuper product to which a lifecycle exception applies; or
18
(b) a qualifying choice investment option to which a lifecycle
19
exception applies;
20
means so much of the product or investment option as relates to a
21
particular subclass of members of the fund to whom gains and
22
losses are streamed under the lifecycle exception.
23
pooled superannuation trust has the same meaning as in the
24
Superannuation Industry (Supervision) Act 1993.
25
qualifying choice investment option has the meaning given by
26
subsection (4).
27
11 Paragraphs 1021NA(1)(b) and (c)
28
Repeal the paragraphs, substitute:
29
(b) the person is required under section 1017BA to ensure that a
30
product dashboard is publicly available on the fund's
31
website; and
32
(c) the person does not comply with that section in relation to
33
that product dashboard.
34
Schedule 1 Product dashboards
8
Superannuation Legislation Amendment (Transparency Measures) Bill
2016
No. , 2016
12 Paragraph 1539(a)
1
Omit "1 July 2013", substitute "31 December 2013".
2
13 Paragraph 1539(b)
3
Omit "1 July 2014", substitute "1 July 2017".
4
Portfolio holdings disclosure Schedule 2
No. , 2016
Superannuation Legislation Amendment (Transparency Measures) Bill
2016
9
Schedule 2--Portfolio holdings disclosure
1
2
Corporations Act 2001
3
1 Subsection 1017BB(1)
4
Repeal the subsection, substitute:
5
Obligation to publicise investment information
6
(1) The trustee, or the trustees, of a registrable superannuation entity
7
must make the following information about each of the entity's
8
investment options publicly available on the entity's website no
9
later than 90 days after each reporting day:
10
(a) sufficient information to identify each financial product or
11
other property:
12
(i) allocated to the investment option; and
13
(ii) in which an asset (a disclosable asset) of the entity, or
14
an associated entity of the entity, is invested at the end
15
of the reporting day;
16
(b) sufficient information to identify each disclosable asset;
17
(c) the total value, at the end of the reporting day, of the
18
disclosable assets;
19
(d) the value, at the end of the reporting day, of each disclosable
20
asset unless that asset is of a kind prescribed by the
21
regulations;
22
(e) if required by the regulations--the total value, at the end of
23
the reporting day, of one or more specified kinds of assets
24
prescribed for the purposes of paragraph (d).
25
2 Subsections 1017BB(4) and (5)
26
Repeal the subsections, substitute:
27
Full exemption
28
(4) Subsection (1) does not apply to the trustee, or the trustees, of a
29
registrable superannuation entity if the entity is:
30
(a) a pooled superannuation trust; or
31
(b) a single member fund; or
32
Schedule 2 Portfolio holdings disclosure
10
Superannuation Legislation Amendment (Transparency Measures) Bill
2016
No. , 2016
(c) a small APRA fund.
1
Partial exemption
2
(5) Subsection (1) does not apply to the trustee, or the trustees, of a
3
registrable superannuation entity for:
4
(a) an investment option of the entity that has been closed to new
5
members for at least 5 years; or
6
(b) a financial product, or other property, that:
7
(i) is allocated to an investment option; and
8
(ii) is not a material investment in accordance with
9
regulations prescribed for the purposes of this
10
paragraph; or
11
(c) up to 5% of the assets referred to in subparagraph (1)(a)(ii)
12
for an investment option if:
13
(i) those assets are commercially sensitive; and
14
(ii) making information publicly available about those
15
assets would be detrimental to the interests of the
16
entity's members; or
17
(d) an asset invested in a financial product or other property
18
solely to support a defined benefit interest (within the
19
meaning of the Income Tax Assessment Act 1997); or
20
(e) an asset invested in a life policy, or investment account
21
contract, of a kind described in
22
subparagraph 1017BA(4A)(a)(i), (ii) or (iii); or
23
(f) an asset of a kind prescribed by the regulations.
24
The trustee, or the trustees, of the entity may determine which
25
assets make up the 5% mentioned in paragraph (c).
26
Note:
An asset covered by paragraph (c), (d), (e) or (f) will not be a
27
disclosable asset.
28
Definitions
29
3 Subsection 1017BB(6)
30
Insert:
31
investment option includes:
32
(a) a choice product that does not contain multiple investment
33
options; and
34
Portfolio holdings disclosure Schedule 2
No. , 2016
Superannuation Legislation Amendment (Transparency Measures) Bill
2016
11
(b) a MySuper product (within the meaning of the
1
Superannuation Industry (Supervision) Act 1993).
2
member, in relation to a superannuation fund (within the meaning
3
of the Superannuation Industry (Supervision) Act 1993), has the
4
same meaning as in that Act.
5
pooled superannuation trust has the same meaning as in the
6
Superannuation Industry (Supervision) Act 1993.
7
small APRA fund means a regulated superannuation fund (within
8
the meaning of the Superannuation Industry (Supervision) Act
9
1993) with less than 5 members.
10
4 Sections 1017BC, 1017BD and 1017BE
11
Repeal the sections.
12
5 Paragraph 1020E(1)(c)
13
Omit ", or provided under subsection 1017BC(3),".
14
6 Subsection 1020E(11) (paragraph (d) of the definition of
15
defective)
16
Omit "or information provided under section 1017BC".
17
7 Section 1021NC
18
Repeal the section.
19
8 Subparagraph 1022B(1)(g)(iii)
20
Omit "or".
21
9 Paragraph 1022B(1)(h)
22
Repeal the paragraph.
23
10 Subparagraph 1041H(3)(a)(iii)
24
Omit ", 1021NB or 1021NC", substitute "or 1021NB".
25
11 Subparagraph 1041K(1)(a)(iii)
26
Omit ", 1021NB or 1021NC", substitute "or 1021NB".
27
Schedule 2 Portfolio holdings disclosure
12
Superannuation Legislation Amendment (Transparency Measures) Bill
2016
No. , 2016
12 Section 1540
1
Omit "30 June 2014", substitute "31 December 2017".
2
13 Section 1541
3
Repeal the section.
4
14 After Part 10.22 of Chapter 10
5
Insert:
6
Part 10.22A--Transitional provisions relating to
7
the Superannuation Legislation
8
Amendment (Transparency Measures) Act
9
2016
10
11
1541A Application of amendments relating to portfolio holdings
12
disclosure
13
The amendments of section 1017BB made by Schedule 2 to the
14
Superannuation Legislation Amendment (Transparency Measures)
15
Act 2016 apply in relation to the reporting day that is 31 December
16
2017 and to later reporting days.
17
15 Schedule 3 (table items 308AG, 308AH and 308AI)
18
Repeal the items.
19